Commerce Commission OK's Fonterra's milk price method

Mon, 27 Aug 2012

Aug. 27 (BusinessDesk) - Fonterra Cooperative Group's method for setting the benchmark Farm Gate Milk Price is "not inconsistent" with its obligations under the Commerce Act to ensure potential competitors are able to compete with it, says the Commerce Commission. The competition watchdog released its report following a "dry run" review of the FGMP process, concluding it "does provide for contestability in the farm gate milk market, as overall the assumptions Fonterra used in setting the price are practically feasible for an efficient processo...

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